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Groundbreaking Lawsuit Tests Whether AI Hiring Tools Trigger FCRA Compliance
A company selling artificial intelligence (AI)-powered applicant assessment tools has been hit with a lawsuit that may be the first of its kind to claim that such tools violate the federal Fair Credit Reporting Act (FCRA) and its California equivalent, the Investigative Consumer Reporting Agencies Act (ICRAA). This case could be the tip of the iceberg for lawsuits based on AI-powered tools that employers are increasingly using to make hiring and other employment decisions.
